Churn rate measures the rate at which customers stop doing business with a company. It’s typically expressed as a percentage over a monthly or annual period.
Churn Rate = (Customers Lost During Period ÷ Customers at Start of Period) × 100
Example: If you start with 1,000 customers and lose 50, your monthly churn is 5%.
Combat churn by improving onboarding, providing excellent customer support, proactively engaging at-risk accounts, gathering and acting on customer feedback, and continuously improving product value.